Buffer Finance – my first investment

Hey there, welcome to the first post about my crypto journey. My goal is to become financially independent through compounding crypto by 2031.  

Now, to kick start my 10 year #HODL portfolio let me introduce you to Buffer.

Buffer is a non-custodial on-chain peer-to-pool options trading protocol that works just like an Automated Market Maker (e.g. PancakeSwap) where traders can create, buy, and settle options against a liquidity pool without the need of a counterparty (option writer). Buffer makes options trading accessible to everyone and much more efficient than its centralized counterparts.

Options are also known as derivatives and are usually referred to as an instrument with value reliant upon or derived from an underlying asset or a group of assets. Options, swaps, forwards, futures contracts are the most known derivatives of traditional financial markets.

In crypto, CEX's have seen significant volume in centralised derivatives products during this bull run. Binance, FTX, Huobi and more all have futures and options products available for retail investors.  

Options have always been among the platoon leaders in the derivative stack and in my opinion, will massively help increase the DeFi TVL and help manage the risk of the retail participants in the decentralised space.

Derivatives will play a key role in the next phase of DeFi development and platforms like Buffer that successfully mimic the functionality and ease of use of these centralised market monsters will see a huge upside.


Benefits of using Buffer...

  • Non-custodial: All liquidity is auto managed by an immutable smart contract
  • Bidirectional liquidity pools: One pool to write both put and call options no separate USDT and BEP-20 pools required
  • Trustless: On-chain trustless settlement for each contract (fully decentralised)
  • American Style Options: Can be exercised anytime before expiry
  • Customizable: Option buyer can choose any strike price
  • Zero liquidity risk: Locked liquidity for each option removes counterparty and liquidity risks for option buyers
  • No-censorship: No KYC or registration required
  • Yield-Farming: Eran yield over any BEP-20 token (Starting with WBNB, WETH, and WBTC)

Use-Cases

Launchpads & IDOs: BNB price fluctuations during the fundraising period can significantly affect the projects fund target and future access. Launchpads or projects can buy put options to hedge the risk.

Service Providers: Service providers like blogs, influencers, and tools like Dxsales who accepts payments in BNB can buy options to avoid losses caused by price fluctuations.

Speculators: Speculators can buy call options if they are expecting a sudden increase in BNB price or buy put if they are expecting a sudden drop in BNB price.

Traders: Traders can buy a put option if they have an open long position on BNB or buy a call option if they have an open short position on BNB.


Tokenomics

$iBFR is the native token for the buffer protocol

Token Utility:

Revenue share - Stake $iBFR to receive a constant stream of passive income

Liquidity mining - Earn yield by staking $iBFR LP pair tokens

Deflationary - Milestone based buybacks and manual burns

Governance - Post Q1 2022 roadmap all feature releases will be governed by $iBFR token holders

Discount - Hold $iBFR tokens and get a discount over the settlement fee required to place a bid in the BNB price prediction game.


Investment

I really like Buffer and the potential that it brings into the space. I'm one of the lucky few to participate in the seed sale and I will soon provide details of my entry and we will be able to track it together in a new dedicated section.

The seed and private sale entry are the riskiest of all but it has a huge upside and it is going to play a big part in the initial growth phase of my portfolio.

The seed sale for Buffer was announced in their Telegram channel and you can find more information about the pool details, vesting period and token info over to their website www.buffer.finance/seedsale


Predictions:  app.buffer.finance

Options: app.buffer.finance

Website: buffer.finance

Docs: docs.buffer.finance

Roadmap: docs.buffer.finance/roadmap

Medium: buffer-finance.medium.com


Investment 1 | 9 years, 11 months to go...